HOUSTON-Shortages of natural gas in Trinidad are causing cutbacks in ammonia production that could result in higher prices in January, sources said on Thursday.
The National Gas Co of Trinidad and Tobago (NGC) on 30 November started an 11-day shutdown for maintenance on natural gas infrastructure, market sources said. As a result, it has cut gas supplies by 20% to producers of ammonia and other chemicals at the Point Lisas industrial chemical complexes.
NGC did not immediately respond to requests for comment.
As a consequence of the gas cuts, at least two major ammonia producers have cut back production.
PotashCorp, which operates four ammonia plants in Trinidad, has shutdown its 550,000 tonnes/year 01 plant until natural gas supplies are restored.
The company confirmed that its other three plants, with total production capacity of more than 1.6m tonnes/year, continue to operate at full capacity.
The 01 plant shutdown has provided PotashCorp the opportunity to conduct its own maintenance on the unit, the company said.
Yara also cut back production at one of its three Point Lisas ammonia plants.
Yara confirmed that its 300,000 tonnes/year plant was temporarily shut down while its two Tringen plants continue to operate at full capacity of 1.075m tonnes/year.
The ammonia production cutbacks will tighten the US Gulf market at a time when marketers are building inventories for the spring application season in North America, sources said.
The contract price of benchmark ammonia for all deliveries in December is $460/tonne CFR (cost & freight) Tampa, Florida, as assessed by ICIS.
The cutbacks in ammonia production could also affect the production of downstream urea.
The National Gas Co of Trinidad and Tobago (NGC) on 30 November started an 11-day shutdown for maintenance on natural gas infrastructure, market sources said. As a result, it has cut gas supplies by 20% to producers of ammonia and other chemicals at the Point Lisas industrial chemical complexes.
NGC did not immediately respond to requests for comment.
As a consequence of the gas cuts, at least two major ammonia producers have cut back production.
PotashCorp, which operates four ammonia plants in Trinidad, has shutdown its 550,000 tonnes/year 01 plant until natural gas supplies are restored.
The company confirmed that its other three plants, with total production capacity of more than 1.6m tonnes/year, continue to operate at full capacity.
The 01 plant shutdown has provided PotashCorp the opportunity to conduct its own maintenance on the unit, the company said.
Yara also cut back production at one of its three Point Lisas ammonia plants.
Yara confirmed that its 300,000 tonnes/year plant was temporarily shut down while its two Tringen plants continue to operate at full capacity of 1.075m tonnes/year.
The ammonia production cutbacks will tighten the US Gulf market at a time when marketers are building inventories for the spring application season in North America, sources said.
The contract price of benchmark ammonia for all deliveries in December is $460/tonne CFR (cost & freight) Tampa, Florida, as assessed by ICIS.
The cutbacks in ammonia production could also affect the production of downstream urea.
